No deduction of interest on bank deposits – govt reminds
Income Tax assessees may be remembering that interest earned on bank deposits, National Savings Certificates, Bonds, Debentures of Public Company, etc. was allowed as deduction from income up to Rs. 12,000/-. This exemption has been withdrawn from the financial year 2005 -06. The government reminds the tax payers that there is no such exemption now. “The taxpayers are accordingly, advised to ensure that such income is taken into account while filing the return of income for assessment year 2006-07, otherwise it may result in levy of interest or penalty.”